Citi Veteran to Exit After Hits
At Hedge Funds He Managed

Reaz Islam, the manager of two Citigroup Inc. hedge-fund families that have imploded in recent months, is leaving the company, according to an internal Citigroup memo.

Mr. Islam, an 18-year veteran of Citigroup and its predecessor companies, has become a lightning rod for investors and Citigroup brokers, who are angry about the rapid and steep declines by the New York bank's Falcon Strategies and ASTA/MAT funds. The fixed-income funds...